The following data pertain to the Oneida Restaurant Supply Company for the year just ended.

Budgeted sales revenue ...........................................................................$205,000

Actual manufacturing overhead .............................................................. 340,000

Budgeted machine hours (based on practical capacity) ......................... 10,000

Budgeted direct-labor hours (based on practical capacity) .................... 20,000

Budgeted direct-labor rate ............................................................................. $ 14

Budgeted manufacturing overhead .......................................................$364,000

Actual machine hours ................................................................................. 11,000

Actual direct-labor hours ............................................................................ 18,000

Actual direct-labor rate ................................................................................... $ 15

Required:

1. Compute the firm’s predetermined overhead rate for the year using each of the following common cost drivers:

(a) Machine hours,

(b) Direct labor hours, and

(c) Direct labor dollars.

2. Calculate the over applied or under applied overhead for the year using each of the cost drivers listed above.